the dusit thani hotel, bangkok:, the essence of.a hotel

.
ASIAN INSTITUTE OF MANAGE1\1ENT~
EugenioLOpezFoundation
THE DUSIT THANI HOTEL, BANGKOK:,
THE ESSENCE OF.A HOTEL
Very Iuxurious, very elegant, very Dusit
- advertising campaign of the Dusit
Thani Hotel (Exhibit 1)
INTRODUCTION
In
an interviewwith World Executive
. ..
.
Digest
in
1989.
Khun
Chanin
Donavanik,
Thiscase1roSwritten by Ma. Vlr-gzmaB. Qumtos,
Senior Research Associate
and lJm Y. Wolf,Professor. Executive
Director of The Dusit Thani Group of
Asian InstituteofManagement(AIM).
Hotels and Resorts said,
All
case
materials are in1endedsolely for the purpose of
class discussion rather than to illustrate either
,
effective or ineffective
handling of a management situation.
No part of this case may be reproduced. stored
in a retrieval system or transmitted in any form
or by any means widlOlltdie permission of die authors
'or the AJ}.L
My mother and I have often talked
about how nice it would be to see a
Thai flag flying over the front of a
hotel overseas. For too long it has
Copyright 0 1993, Asian Institute ofManagemerlL
Refer to availability
of slides.
been the other way around.
The Dusii Thani Hotel, Banflkolc The Essence of a Hotel
Pafle 2
In 1993, the Group managed a chain of hotels all over
Thailand -plus another one, in Dallas called T11e Melrose Hotel
(Exhibit 2). In' Bangkok, The Dusit Thani was ranked number
three among the top hotels in Thailand and number 15 among
the top hotels in Asia (Exhibit3). Its proJects in the pipeline have
been towards regional expansion in view of the growing Asian
market Management. however, is divided in its views. Some of
the senior officers feel that the company should focus on the
domestic market. especially-outside Bangkok. given the rise of
the Thai middle<lass that has -increased its purchasing power.
BACKGROUND
No other landmark in Bangkok's rapid changing skyline is
more instantly recognizable than the unique triangular spire of
The Dusit Thani. Rising high above the junction of Rama IV and
SHorn Road and overlooking the green acres of Lumpini Park,
The Dusit Thani is located in one of Bangkok's prime business,
financial and entertainment center.
The Dusit Thafli is widely recognized for its commitment to
quality, combining modem international accommodation
standards with superior service and decor that is distinctly Thai.
The name tlDusit Thani" literally means "A Town in Heaven," a
utopian concept envisaged in 1918 by Rama VI, KingVajiravudh,
whose statute still stands today across the hotel." The king had
idealized a "perfect community" where all people could enjoy
freedom and happiness. The Dusit Thani was designed to
emulate this kind of perfection. From the architecture and interior
design that displays traditional Thai artwork to facilities that
surpass the highest expectations of modem deluxe hospitality,
The Dusit Thani tries to ensure that all the needs and wants of its
:
guests would be fulfilled. In fact, the hotel's mission statement is
to offer genuine Thai hospitality together with a consistent quality
of service and product. while maximizing revenue and profit for
the company. It also strives to be internationally known as one of
the world's best hotels.
COMPANY
HISTORY
The Dusit Thani is the flagship of The Dusit Thani Group
of hotels which draws on more than 40 years of experience. The
origins of the company date back to 1949 ..\'hen the chairperson
The Dusii Than; Hotel, Banf1!5Ek.:The~~nce da Hotel
':-L
Pas..e 3
and managing director Khunying Chanut Piyaoui opened her first
hotel, the. "Princess" on Bangkok's. New Road.. In the 60s, .she
conceived the idea of a landmark hotel which subsequently
became the company's flagship, The Dusit Thani in Bangkok.
When it opened in February 1970 with its international standard
of accommodation, it was a bold undertaking on the part of a
local hotelier. Thailand's tourism industry had yet to show signs
of the enonnous' growth it Wc:lSlater to .record, and the success
of a large five-star city hotel was far from certain. However, from
the beginning, The. Dusit Thani was able to achieve high
popularity as it set new standards for Bangkok's hotel industry.
Since then, the hotel has remained in the front ranks despite an
unprecedented scale of new.. hotel construction and stiff
competition.
Followinga decade of success with the hotel, The Dusit
Thani Group began its expansion beyond Bangkok. A chain of
hotels was gradually built Chiang Mai, capital of the North, was
the obvious first step, closely followed by Phuket and Pattaya.
Later, another northern hotel was opened in Chiang Rai, while
another was developed in Cha-amlHua Hin.
In 1991, The Dusit Thani Group was transformed into a
conglomerate with the creation of a separate company, Royal
Princess Co., Ltd. This was the result of a marketing decision to
create a new product brand-Royal Princess Hotels - while Dusit
Hotels and Resorts and another associate company were
affiliated under the publicly listed Dusit Thani Corporation traded
in the Securities Exchange of Thailand, the first hotel to do so.
DUSIT
HOTELS AND
RESORTS
In the luxury market, with The Dusit Thani, Bangkok as
its flagship, DUSIT HOTELS AND RESORTS has established
itself as the leading Thai-based hotel group (based on a survey
by Asiamoney
- Refer
to Exhibit 3).
Dusit Hotels and Resorts
currently operates 5-star deluxe properties in every primary
destination in Thailand: Bangkok, Phuket, Pattaya, Cha-amlHua
Hin, Chiang Rai, and Samui. The Group will soon include two
all-suite projects in Krabi, opening in November 1993, and in
Chiang Maiin late 1994-
le Dusii Than;Hotel, Banflkolc The Cssenceof B Hotal
ROYAL
PRINCESS
HOTELS
P8fl.e 4
The. second market segmentation .of "The Dusit 1}1~ni
Group is ROYAL ,PRINCESS HOTELS, an affiliate group
operatingthroughoutThailand. The flagship,The Royal-Princess
Hot,elJformertyThe Dusit Princess) is located in Bangkok. There
are two other hotels in Bangkok,
Bel-Aire Princess and the
Grand China Princess which are located in the ,Chinatown,area.
Other Royal Princess Hotels are the Royal Princess Chiang Mai
which began operations in 1991", the Palmeraie Princess in
Rayang and the, recently opened Royal Princess Vmat The
Group's forthcoming projects indude Charden Thani Princess.
Vihoen-Viaen and the Wangtara Princess. Chachoengsao, both
to be launched by the end of 1993. Accordingto KhunChanin,
There are too many 5-star hotels right now. So we
are opening more 3 and 4-star ones up country,
under the name of the Royal Princess.
Currently, there are at least five ~ther Royal Princess
Hotelsunder constructionin various parts of Thailand.
A distinct feature of The Dusit Thani Group of Hotels and
Resorts is that unlike international chains like the Hilton. Grand
Hyatt or the Inter-continental, The Dusit Thani Group not only
manages the hotels but owns them.
FRANCHISE
AND
AFFILIA TION
The third segment of The Dusit Thani Group is Thani
Hotels, Resorts and Inns, a franchise group offering a reservation
network and assistanCe in operations to independent hotel
owners and operators in selected destinations throughout
Thailand. As part of its Franchise Division, The Dusit Thani
Group also operates an affiliate company as the exclusive
licensee of the Best Western trademark in Thailand. The Best
Western International lodging chain represents more than 3,300
independent hotels, motor inns, and resorts worldwide with a
reservation center handling over 10 million calls a year. In
Thailand, Best Western membership is offered to independent
hotels that do not carry any other franchise brand affiliation.
The Dusit Thani Hotel, Ban9,.kolcThe Essence.o(a
Hotel
Pa9,.e
5
Khun Chanin's objective fpr the fr:anchisesystem ISnot to
make more profit He said;
Best Western is an association, not a private
company, so it is not a profit-oriented organization.
We are only helping out newcomers in the hotel
business, especially those in the provinces.
Investors there do not have much experience and
they lack the knowledge of hotel management. We
serve as their consultant. helping them. with
marketing by referring guests there and taking
reservations for them at the reservation center in
Bangkok. In the hotel industry, we don't have
competitors, only friends. Ifthe business goes well
in general, The Dusit Thani Group also benefits
from it
THE DUSIT
THANI,
BANGKOK
The Dusit Thani, Bangkok has 520 guest rooms in a
variety of styles. The most well-known are the luxurious "Thai
Heritage Suites," modeled after various periods of Thailand's
history. These spacious 1 or 2 bedroom suites are finished in
polished tropical hardwoods and handloomed Thai silk with
antiques and paintings from the Northern Lanna, Sukothai,
Northeastern Pimai and Central Bangkok Ratakosin historical
periods. Each of these corner suites is different, offering a
choice of period and decor. Each is furnished with a large
entertaining area, separate from the livinglworking and meeting
room section, a bar, dressing room and an all-marble bathroom
complete with a circular tub and separate shower stall.
In 1983, the hotel underwent a major renovation at a cost
of 8200 millionand put up the "Landmark Tower." Designed for
the business travelers, the rooms in the Tower have a floor.area
of 56 sq. meters, making them "among the most spacious hotel
rooms in the world," according to the hotel's brochures. Another
feature is the Landmark Deluxe rooms, mini-apartments with
separate livinglworkingareas similar to the 'Thai Heritage Suite".
They are furnished with luxury amenities and adorned with
authentic Thai period decor in burnished wood, Thai silk wall
coverings, paintings, artifacts, and furniture. All Landmark guests
The Dusit Thani HOtel, Banflkok: The Essence of a Hotel
P!!S!!. 6
enjoy the added bonus of the Landmark Lounge for meetings,
complimentary tea/coffee, soft drinks or cocktails overtooking the
hoters garden.
To further cater to the business executives, the hotel
came up with a 3-bedroom suite comprising of a bedroom, living
room, and boardroom, each with a private balcony overtooking
the hoters landscaped pool and fountain. Located on the hotel's
third floor, these Business Suites are easily accessible to the
Business Centre and the Landmark Lounge. According to the
hoters general manager, Daniel McCafferty,
.
As an. increasingly important business and
financial center serving the entire Asia region,
Bangkok is welcoming more top-level executives
than ever before. Most of them are here on
business, making contacts, holding meetings, and
touching base with other top executives. With little
time on their hands, we felt a need from the
: business travelers for a centrally-located one-stop
business suite offering superior-serviced living,
entertainment and conference room facilities.
Like all the other suites of the hotel, these suites are
designed i£j classic decor with a Thai accent with hand-carved
wooden panels, burnished teak wood and Thai silk wall and
upholstery coverings throughout The highlight of the suite is the
boardroom which is large enough for meetings of 10. Equipment
here includes a wall board, screen, overhead and carousel
projectors, private fax-line, and 2 100 telephone lines.
Complimentary coffee breaks for morning or afternoon meetings
are another extra, along with complimentary breakfast in
Hamilton's Restaurant and special butler service. Allfacilities of
the Business Centre are also available on-hand including
secretarial and translation services.
There is a fully equipped computerized Executive
Business, Centre with Reuters wire, business library, private
boardroom, translation, printing, photocopying, personal
computers, telex, fax, and secretarial assistance.
Meeting
facilities are available with a selection of function rooms; and for
The Dusit Thani Hotel, Bans..kok: The Essence of 8 Hotel
PSs..6 7
big -conferences and functions, there is the Napalai Ballroom
which can accommodate up to 2,000 people.
-"':_-"--"~
RECREA7/0N~-~:
FACILITIES,
---
The Dusit Thani hSl,$an outdoor swimming pool which is
.-'set in the hotel's landscaped central gardens. Adjoining the pool
js afulfy
equipped air-conditioned Fitness Centre with
gymnasium,
whirlpools,
saunas, squash and tennis courts.
.
--
DiNING~~C
FACILITIES
c-
The Dusit Thani has a selection of restaurants
and
lounges ranging from the very formal to the very casual. There is
the Champagne Bar, an e~gant. quiet and softly-litlounge above
the main lobby. Off the main lobby is the Library 1918 which has
the combination of a reading room and a cocktail lounge. Then
there is the Lobby Lounge which has a garden setting and caters
to guests who would like a quiet place for morning coffee or
afternoon- tea. AdJacent to this is the Vietnamese restaurant,
Thien Duong, and nearby is the Bubbles Videotheque, widely
recognized as one of Bangkok's most popular nightspots.
Off the Lower Lobby is Benjarong, or "Five Flavours"
serving Thai style cuisine. For Chinese food, there are two
outlets, the Mayflower and Chinatown, both serving everything
from dimsum to Cantonese cuisine and for Japanese food there
is the Shogun. For the guests looking for Western cuisine, there
is the Hamilton's Steak House which serves imported
charcoal-grilled steaks and seafood. Atop the hotel is the Tiara,
a lounge and restaurant with a panoramic view of Bangkok. The
Tiara has been renovated to become "California-style," a place
serving a blend of Western and Eastern cuisine.
Finally there is the Pavilion, a spacious 24-hour coffee
shop serving Thai. Chinese, Continental and American dishes.
RESERVATION
SYSTEMS
-The Dusit Thani is linked up with several reservations
network: The Leading Hotels of the World, Preferred Hotels
Worldwide, Steigenberger Reservation Service, Groupe des
Hotels Concorde, Utell International. and Dusit Hotels and
Resorts' own reservation system.
,
The Dusit Thani Hotel. Bans.kok: The Essence of a Hotel
PaS!!. 8
._,
AWARDS AND
Despite a downturn in tourism in 1992 in Thailand, The
Dusit Thani, Bangkok did very well, earning 4 awards that year.
These were:
RECOGNITION
- -
" -
- - - -.-.
1.
- -... - - -- -.-
ZAKENREIS BUSINESS TRAVEL AND TRADE
MAGAZINE
1992 Award for the Ultimate Business Hotel in Asia
2~
.
3.
ASIAN REVIEW MAGAZINE -
1992 Asian Review Asia Hotel Awards - Best Overall
Hotel
.'
EXECUTIVE TRAVEL MAGAZINE
Hotel of the year awards 1992-Second runner-up
4.
PERFORMANCE
1992
CUSTOMER
PROFILE
INTERNATIONAL
HOTELASSOCIATION
Winner of the 1992 Global Environment Award
Asia Money Magazine
In 1992, the hotel's average occupancy rate was 70.65%
which was higher than the previous year at 66.02%. (Exhibit4 Breakdown of Occupancy Rates for the period 1988 to 1992.)
Exhibit 5 and 6 shows the profit and loss summary for the year
end of 1992.
The Dusit Thani's main dients
are European
businessmen. Exhibit 7 gives a breakdown of the arrivals in
Thailand by the country of residence for 1990 and 1991. Exhibit
8 gives a summary of hotel guests by the country of residence.
Exhibit 9 shows the customer profile of the hotel and the
occupancy by each segment for 1992 and 1993. Exhibit10 gives
the room revenue generated by the various segments. Marubeni
tops the list of the Dusit's corporate clients. Exhibit 11 shows a
list of the top 20 corporate clients of the hotel.
.
The rack and corporate rates of the hotel for 1992/93 are
presented in Exhibit 12 while Exhibit 13 gives the rates from
1989 to 1993.
~
PS!1.e 9
The Dusit Than; Hotel. Ban!1.kolc The Essence of a Hole/'
PERSONNEL-
", , -
AUhe end.of
1992,
The Dusit Thani had, 995
employees
on its payfC:)IL:;'~ibit,14 indicates the number of employees for
the paSt 'fi'ie'")te-ars and"Exhibit 15 gives a breakdown of
employ~s
by de.gartment
,
The Dusit Thani is directly managed by a General
Manager, Mr. Daniel McCafferty, an Irish who has been in this
position for 6 years. He reports directly to the Senior
Vice-President, Khun Khampi Suwanarat
(Exhibit 16 Organization Chart)
Khun Chanin Donavanik believes that the proper
development of tourism begins with quality people. According to
hi~.- no input is more important than the contribution of the
employees. If they are well. trained, given good benefits and
proud of who they work for. they will provide guests with good
service and that in turn translates into a high return rate of guests
and a high rate of return for the investors. This philosophy is the
essence of the company's corporate culture and The Dusit Thani
is noted for its. loyal employees with a turnover rate of only 0.3
percent
MARKETING
The Dusit Thani primarilytargets customers in the five-star
market segment
The Dusit Thani Group has realized the
potential of the four and three-star market and has made second
city destinations throughout Thailand. a strategy for expansion.
Hence. the number of Royal Princess Hotel projects in the
pipeline. The Dusit Thani Group is pushing this strategy
aggressively.
Customers for The Dusit Thani. Bangkok are divided into
corporate. government/embassy,
package, tour, airlines,
convention, tourist and others. The specific strategy for each
section is seen in Appendix 1.
KEY SUCCESS
FACTORS
Khun Khampi Suwanarat, Senior Vice-President of The
Dusit Thani Group identifies three success factors of The Dusit
Thani.Bangkok:
,
.
P!!!S2. 10
The Dusit Than; Hotel, Banflkotc The Essence of 8 Hotel
The first fact'?!.is thec:r:eatiy~ ability.;QfThe Dusit Thani to
"pOSition.itselfto:suit'thecehanginginarket'enVironmenl The Dusit
Thani has always. been first in many things. It was the first Thai
hotel to offer international standards with traditional Thai
hospitality.
Throughout the years, The Dusit Tharii has succeeded in
staying one step ahead of its competitors~" For example, the
popular disco "Bubbles" was the first to introduce a disc jockey
back in the 70s and today continues to set the trend in Bangkok's
popular music scene.
Secondly, as a hotel-owning company itself, The Dusit
Thani Group has a deeper understanding of owners'
requirements for running a successful hotel operation. This
differentiates it from the purely management company
competitors.
.
.
The senior management team remains a consistent force
behind the company. Unlike other chain operations which move
hotel General Managers every two-three years, the company's
policy is not to move them too frequently to provide continuity in
strategic management positions. Mr. Daniel McCafferty, General
Manager of The Dusit Thani has been in his current position for
over six years.
The third factor is superior service. In The Dusit Thani,
the service is warm and efficient, consistent in all areas - front
office, room service, dining outlets, etc. It is this superior service
that ensures that the guests, both local and international, will
continue to return.
THE HOTEL
INDUSTRY
IN THAILAND
The hotel industry is a service industry whose revenue
comes from two main activities - room accommodation and the
provision of food and beverages.
Other services such as
laundry, conference facilities, recreation amenities, entertainment
and business support complement these two activities.
The hotel industry has common characteristics with the
service industry. A service is intangible and perishable. In the
~
The Dusit Thani Hotel, Banflkok: The Essence af 8 Hotel
Pafle 11
case of a hotel, any unoccupied seat in any of its restaurants or
unoccupied rooms represents a loss in potential revenue.
..
.
..
.
Hotel"services are limited to a specific location. Their
activity is continuous -, they are open 24 -hours daily. induding
Sunday and public holidays. Uke other service establishments,
the hotel business is labor intensive. Hotels rely heavily on their
employees to create good impressions and ensure customer
satisfaction. Differentiationamong competing hotels is difficultto
attain and a lot depends on the efforts of employees in promoting
the desired image of a certain hotel.
Hotels are also capital intensive. The bulk of the capital is
permanently sunk in fIXedassets (land and building) and interior
assets (equipment, furniture and fIXtures). Hotels have to
continuallyrenovate in order to keep up with current trends. High
investment costs give hotels a long payback period.
.
According to the Statistics Department of the Tourism
Authority of Thailand, the number of tourists coming to Thailand
in the first quarter of 1993 was recorded at 1.5 million, an
increase of about 9.4% compared to the same period in 1992.1
The hotel market in Bangkok showed an increase of
approximately 3,000 new rooms in 1993 and
over 2,000
additional rooms in 1994. (Exhibit 17 - New Hotel Rooms in
Bangkok 1992-94.)
Even though the number of tourists was 9% higher in the
first quarter of 1993 than in the same period last year, major hotel
profits decreased because of the oversupply of hotel rooms.
Another reason for decreased profits was that most tourists were
Asians, especially Chinese who had short holidays in Thailand
and preferred to stay in economy class hotels. The number of
Chinese tourists jumped a massive 169% in the first quarter of
1993.
According to research by the Thai Investment and
Securities Co. (TISCO), most hotels will continue to face
increasingly severe competition and only those which are able to
1Vijitjanya, Pakasit,
"More Tourists Visit In First Quarter," Banqkok Post, June 21, 1993.
pafl6 12
~Dusit Than; Hotel, Banflkolc The Essence of 8 Hotel
..
... - .
adjustthemselves
effectively will maintain their market share and
eamings~".In the long,tenn, -the prospects. for !he hotel ind~try
are still promising. The regional growth of the countrllis-. surrounding Thaitand willhelp the demand for rooms in Bangkolc .
. ...
COMPETITION
Bangkok is very much seen in the future as a gateway city
for Indo-China which will result in the increase in visitors and
businesses.
The hotel industry in Thailand is a very ,competitive one.
Exhibit 18 presents the major competitors of The Dusit Thani
plus data on their rooms, occupancy rates, revenue and car park
fadlities.
In Thailand, the market segmentation between five-star
and three and four-star hotels and between business, leisure and
resort destinations is very steep. Thailand has many five-star
hotels but not enough moderately priced three and four-star
hotels. As a result of the recession, both business and leisure
travelers are either:
1. traveling less
2. looking for less expensive accommodation
3. looking for greater value for their money
Customers in the Thai market have realized that the hotel
business is a buyer's market They are looking for deals and are
no longer willing to pay rack rates.
""'-'&£.&~--
.
.'
DUSIT ~
Advertising
Campa~gn
-
.
-
.
-
BANGKOK (A)
of the Dusit Thani Hotel
-,If".
!r'~
- I
'1
;
i
..
V.-ry r~k:ing
in bUstling Bangkok to
mt~r calm, airy world ofTh~ Dusit Thani.
I
'j
V.-ryi&izOy locat~d in th~ cmrr~ oj
I
th~ ciry.
If-"'"
1""
i
V.-ry luxurious
th~ guatrooms
and
suit~s. V.-ry rich th~ d~cor. V.-ry rraditionaf
th~ Thai opubc~.
.And v.-ry &liciouslyapp~tiIing the
~ight restaurants.
V.-ry liv~!y th~ Bubbks
Vrdeoth~que.
V.-ry sophisricat~d the L.ibrary 1918
(rtad novei ova cocktail).
V.-rystimulating the Fitness Cmrre
(gym. tmnis, sq.uash), (from time to time).
V.-ry courreousthnervic~
(alu:ays).
Veriry, tha~
that qUlle
compam
is nothing
with Th~ Dusit Thani.
~
the ",,""«0«
ul.Isit 7h~qi
- TH."LAND
RL"XER.l!P. HOTEL OF THE YE.\R !,.J! .\ ~'ARD
C!VL~ BYEX::ClTTWE TitWEL :"L\C.\ZI:-;E
THE DCSITiHAN!.
cn..~rx.rc!solrb::Wri:I
RA,',{AIV ROAD. BAf'lCKOK 10500.TIW'.A'iD.
G. ~Rf::surv4"""5<...a
C.
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7EL: (66 2) 236 o-I~9. mEAX:
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(66 2) 236 6-4QJ~ 236 7238. TnEX: 81027 TH.
(' =.F-DES
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CON:ORD::'I1'n Uh:llln,,:rn<JtiU
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Exhibit 2
DUStT_-THANI-BANGKOK-
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List of Hotels inDtJ'sit-Gro-"U'p;
- _As-of "une-1993
A. DUSIT --HOTELS & R£sOR-Ts --.:~ -~~--
-- ..-'"
~
(A)
~
~. .::~.-
.
.
.
.-.,-
-
:
The Dusit Thani, Bangkok
Dusit Laguna Resort, Phuket
Dusit Resort, pattaya
Dusit Island Resort, Chiangrai
.
Dusit Resort & Polo Club, Cha AmlHua Hin
Santiburi Dusit Resort, Koh Samui
Dusit Melrose, Dallas, Texas
Du.sit Rayavadee, Krabi . Ocean Marina Yacht Club-,Tomtien pattaya
Dusit Premier, Chiang Mai
-
B.
~.
-
1970
.1987
1988
1990
1990
1992
1992
1993
1993
1994
-
ROYAL PRINCESS HOTELS
Royal Princess. Bangkok
Bel-Aire Princess, Bangkok
Royal Princess, Chiangmai
Grand China Princess, Bangkok
- Palmeraie'Princess, Rayang
Royal Princess Vawat
Wangtara- Princess, Chachoengsao
Charden Thai Princess, Vihoe Viaen
1989
1991
1991
1993
1993
1993
1993
1993
C. BEST WESTERNITHANIHOTELS, RESORTS, AND INNS
-
Bel-Aire Princess. Bangkok
P.R..Union Inn, Bangkok
Phuket Island Resort. Phuket
Baan Thai Beach Resort, Phuket
Nong Khai Grand Thani Hotel. Nong Khai
Maeyom Palace Thani Hotel. Phrae
Roi-Et Thani Hotel
Suan Sua Thani Hotel & Resort
1992
1992
1992
1992
1992
1992
.1994
1992
eXntDlt
~
DUSIT THAN I BANGKOK (A)
Hotel Rankings
",>:,~,:,.,:~::»,::::,,<::::::.
.w
,:<::<.
~11Wt_Wr.~
Rank
'
Score
Hotel
--
1.
Oriental.
. ...
320.5
"2
Regent
205.0
3
Dusit Thani
150.0
4
Grand I:Iyatt
139,0
5
.
HiltonInternationalBangkok
111-.5 .
6
7
SukDthai
Shangn-Ia
49_0
29.5
!t~1!ilt[liil'llllijiii11Itfi~illl,ij
Rank
Hotel
.
Score
- Bangkok
1
Oriental
2
Grand
3
Regent
4
Island ShangrR,a - l;IongKong
5
Mandarin Oriental
6
Regent
7
Grand Hyatt Jakarta
20
6
Shangn-La - Bangkok
15
=
Shangn-La - Singapore
15
10
Sherwood - Taipei
13
11
Oriental-Singapore
12
12
Sukothai - Bangkok
9
13
Park Hyatt - Sydney
8
=
Raffles - Singapore
8
15
Dusit Thani
Hyatt
59
- Hong
36
KDng
- Bangkok
- Hong
26
- Hong
Kong
Kong
-
- Bangkok
=
=
=
Shangn-La - Kuala Lumpur
19
Grand
Hyatt
20
Okura
- Tokyo
=
Peninsula
Source:
-
Grand Hyatt Bangkok
Hyatt Regency
-Singapore
- Erawan
- Hong
24
23
21
7
7
7
7
6
5
KDng
Business Travel
Asiamoney.May1993
5
Exhibit 4
-
DU5.it Thani Bangkok (Al
.Occupancy Rate.
Month
..
January
February
March
April
May
June
Juty
August
September
October
November
December
1989.
1988
1990
1991
1992
82.50
93.60
85.43
70.42
71.27
60.47
61.86
61.82
70.66
74.21
.81.36 74.64
64.50
53.50
54'.70
57.50
56.50
61.30
60.30
63.10
62.20
88.40
87.20
83.00
71.43
81.38
70.00
79.84
59.55
52.04
67.49
79.50
74.50
74.00
71.23
66.90
.
.
-88.50
97.90.
. 91.40
84.40
76.60
14.00
75.20
.84.50
83.00
88.00.
94.60
82.50
1
..
92:50
91.00
90.50.
76.30
76.63
74.75
76.47
77.68
77.19
82.59
95.13
79.31
.
Exhibit 5
Duslt Thanl Bangkok (A)
:~:i~ofit
,
-
~.d:~ossi~ary~
Report Date 31/12192
,~.- -
,- - (8'000)
;;~.r.IIIIII'A'r~
TOTAL DEPARTMENTALPROfIT (LOSS)
-1 -
470,4251
556,231
5,636
19.7471
6,784
16,7l12
5,413
6,598
17,619
5,938
5,991
32,169
26,753
29,548
19,460
50,403
56,455
19,654
41,582
60,515
22,551
35,632
64,363
126,318
121,151
122,546
150,504
162.
319,921
404,131
435,1291 -
OVERHEADDEPARTMENTS
PAYROLL8 EMP.REL.
- -- ADMNSTRATlVEANDGENERAL
MARKETING
PROPERTY, OPERATION,
NT. &ENERGY CO.
TOTAL PAYROLL & EMPLOYEE RELATION
OTHEREXPENSES
ADMNSTRATIVEAND GENERAL
MARKETING
PROPERTY, OPERAllON,
NT. 8 ENERGY CO.
TOTAL OTHEREXPENSES
TOTAL OVERHEADDEPARTMENTS
LOOSE PROFIT
158,487
---------------------------216,642
259,284
RENT
1,463
3,000
1,453
PROPERTY TIV<
INSURANCE BULDlNG
PROFIT BEFORE GAIN (LOSS) ON PROP. SALE
8,292
1,358
BASIC MANAGEMENT FEE
COST OPERATING PROFIT
================
==============
319,921
1,463
2,640
1,417
395,845
1,860
3,000
1,800
263,368
314,401
389,185
263,368
314,4011
389,185
GPJN OR LOSS ON SAlES OF PROPERTY
PROFIT BEFORE INTEREST
INTEREST INCOME
INTEREST EXPE'NSES
PROFIT BEFOREDEPRE.&AMORTIZA.llON
4,914 ,
5
389,185
258,217
321,199
52,069
14,596
55,315
11,922
201,610
247,962\
367,549
- 201,610
247,962
361,549
74,379
99,416
173,583
. 268,073
DEPREOAllON AMORTIZATION
,OPERATINGPROFIT (LOSS)
6,796
36
21,600
INCENTIVE MANAGEMENT FEE
!'I OR (LOSS)ON FORBGN EXCHANGE
EXTRA ORDINARY ITEM
PROAT(LOSS} BEFOREtNCOME TAXES
CORPORATE INCOME TAXES
.NET PROFIT (LOSS)
-
60,463
- 141,127
Exhibit 6
Dusit Thani Bangkok (A)
.
profitand L-
Summa'Y
Report Dat8 3fJ12S2
(81100)
.' ..
".
ROOM AVAIt.ABl.E
ROOM OCCUPIED
194
135
.
-3
I AVERAGE
DOUBLEOCCUPCY
ROOM RATE .
NUMBER OF GUEST
194
194
132
. ....'
69.60
,
I
00.00
3
.
169
.173
3
172"
I
..
REVENUE.
ROOMS
FOOD AND BEVERAGE
TELEPHONE
lAUNDRY AND VALET
GUEST ACTMTIES
BUSINESS CENTER
OTHER OPERATED DEPARTMENTS
RENTALS AND O'THER INCOME
'
342,"37
329-,565
35."58
15,,263
2.160 -4.ese
12.439
TOTAl REVENUE
<46.1"
44.41
U8
2.00
0.00
0.29
.0.65
1.67
$1."79
3«.554
35.214
16.29"
2,658
12.562
.
-47.W
44.24
-4.52
209
0.00
0.00
392.161
. 375,Q35
43.255
14.soo
1.62
0.341
4,440
12,00:)
100.00I
842.3211
7-42.178
100.00
FOOD AND BEVERAGE
TELEPHONE
BUSINESS CENTER
OTHER OPERATED DEPARTMENTS
124.233
27Jm
214
523
37.70
76.41
9.92
10.77
'.935
28.455
TOTAl COST OF SAlES
152,060
20.49
159.390
20.471
163,3351
ROOMS
FOOD AND BEVERAGE
TELEPHONE
lAUNDRY AND VALET
GUEST ACiMTIES
BUSINESS CENTER
OTHER OPERATED DEPARTMENTS
20 J1Jl
61,133
1,270
'4J529
19,ocg
56.319
1.133
4,582
5.42
16.35
3.22
28.14
0.00
0.00
21::JJ
5-4
JSJ
1.178
5,0031
252
14
6.13
18.55
3.58
29.67
0.00
11.66
O.
TOTAl PAYROLL & EMPLOYEE RELATION
00,100
11.00
81.943
10.521
81,EE1
23.756
41.028
16
1.799
23.003
23
1,978
6.26
12.19
0.00
12.15
0.00
0.00
0.00
18.631
21.103
119
991
175
.26
6.94
12.45
0.05
11.79
0.00
8.07
0.53
. 66.000
9.00
66,893
8.60
4O,B4-4
778.7531
1(
COST OF SALES
.
00.81
33.00/
0.00
0.00
127 ;El
3)fH3
. 1
PAYROLL & EMP. REL.
'
0.00,
OTHER EXPENSES
ROOMS
FOOD AND BEVERAGE
TELEPHONE
LAUNDRY AND V.AJ..ET
GUEST ACTMTIES
BUSINESS CENTER
OTHER OPERATED DEPARTMENTS
TOTAL OTHER EXPENSES
TOTAL DEPARTMENT EXPENSES
I
'JJ7,O48 I
-41,9B4
I
:3
:D3.326
39.59
86.93
31.
19.97
58.5-4
0.00
70.35
88.40
100.00
324,561
115.316
5,604
9,726
352J1XJ
173,475
5.B70
8.440
8
4
1
5
2.65B
12.562
88.32
33.47
15.91
59.72
0.00
0.00
100.00
100.00
4'1
12,000
10
10
58.63
470.427
60.41
556.2311
6
2ffi
",.371
DEPT. PROFIT (LOSS)
ROOMS
FOOD AND BEVERAGE
TELEPHONE
lAUNDRY AND VALET
GUEST ACiMTIES
BUSINESS CENTER
OTHER OPERATED DEPARTMENTS
RENTALS AND OlHER INCOME
TOTAL DePARTMENTAL PROFIT (LOSS)
297,694
103.169
7.079
8.935
1.519
4.295
12.439
I
435.1
Exhlb~ 7
Dusit Thani Bang kok (A)
Total Qv';,..eas Market Production In Thailand: TAT StatlUcalFigures By Penons
(AJ11990&Jan 1991)
:s
1. ASIA
Thailand
Japan
HongKong
Singapor..
Other As e<an!
Other Asia
TOTAl
2.
AUSTR.AU6.
NEW ZEAlAND
503,156
652,299
382,771
335,679
859,441
.--284,858
9.50
453,86<1
12.31
7.22
6.33
16.22
5.38
559,501
341,442
320,064
913,456
'
371,756 :
8.92
6.92
11.00
6.71
6.29
17.96
7.31
58.19
5.11
5.92
5.15
4.57
6.38
3.506.39
4.Q73.19
3,235.65
3,147.84
. 3,508.04
2,855.90
5.68
3,387.84
3,1.87.Q<t
2,347.45
3,018,205
56.96
252,173
32,408
4.76
0.61
202,627 .
23,865
3.98
0.47
7.05
8.31
227,875
106,129
243,123
194,414
35,791
141,369
279,256
-----
4.30
2.0-1
4.59
3.67
0.68
2.67
5.27
197,608
113,169
257,031
33,972
141,002
269,242
3.88
2.22
5.05
3.40
0.67
2.77
5.29
9.47
9.17
13.80
10.78
8.31
13.60
7.45
1,229,957
23.21
1,184,969
23.29
10.37
285,352
68,987
5.39
1.30
2d8,441
6d ,189
4.88
1.26
0.25
14,182
0.28
S67,770
11.9
326,012
6.4:2
90,218
1.70
79,271
1.56
11.60
2,663.53
308,121
5.81
309,182
6.08
8.81
4,156.54
5,298,8S0
100.00
5,086,809
100.00
8.d9
3,123.39
2,960,083'
:
3. EUROPE
'1:'
England
Italy
Germany
Franctl
Spain
Scandinaofia
OtherEurope
TOTAl
4.
'
172,945
2,237.91
3,627.74
1,9?7.63
.2,13.98
4,7p4.75
2,367.46
2,S43.2
2,764.61
AMERICAS
USA
Canada
Sou1hAmerica
TOTAL
5. MIDDLEEAST
6.
OTHERS
GRANDTOTAL
13,439
_u_.-
.---
.
7.63
3,314.87
7.99
7.13
3,158.79
3.596.32
7,150
3,5156,66
-
.'
Exhibit 8
.
.
.
.
.
Dusit Thani B~ng'~~k (A)'
Market Production Summary Sheet By C'ountry of Residence
1.
ASIA
Thailand
Japan
Hong Kong
Singapore
Other Aseans
Other Asia
6,715
27,340
7,595
8,051
7,458
6,804
3.70
15.05
4.18
4.4.3.
4.11
3.75
3,882
12,405
2,700
TOTAL
63,963
35.22
27,372
7,351
4.05
4,443
559
0.31
652
29,015
12,910
6,502
3,558
9,829
.2,076
15.97
7.11
9,503
1.96
5.41
1.14
5.23
15,586
5,960
3,442
1,525
2,170
1,326
4,421
16.61
6.35
3.67
1.63
2.31
1.42
4.71
73,393
40.40
34,432
36.70
17,110
2,730
1,980
9.42
1.50
1.09
10,902
1,623
1,731
11.62
1.73
1.84-
TOTAL
I 21,820
12.01
14,256
15.19
5.
MIDDLEEAST
I
2,070
1.14
961
1.02
6.
OTHERS
I
12,475
6.87
11,730
12.50
I 181,631
100.00
93,846
100.00
2.
AUSTRALIA
NEW ZEAlAND
3.
3,109 .
2,872
2,404
I
29.17
I
4.73
. 0.69
EUROPE
England
Italy
Germany.
. France
Spain
Scandinavia
Other Europe
"
TOTAL
4.
4.14
. 13.22
2.88
3.31
3.06
2.56
. 3.58
AMERICAS
USA
Canada
South America
GRANDTOTAL
.
...--.
.
.
J!.XIUUIl
.
'.J
DUSIT TI-IANIBANGKOK (A)
Occupancy By Segment: May 1993
J8"
5~ ~
:<2::.:::':::::::':':'::'
5%
17~ ::(::"..
J Y.
J~
32%
!"
8%
I~"
31"
,"
J%
13%
...
10"
I4"
36"
::.:::<:.:.:.:.:.:.:.:.:
2"
I 8 " :W",:::':':':':':':""'"
:"'45,,"
'" 20" 2"
BUDGET
SEGMENT
4"
!~
J~
1992
%
Y-T-D BUDGET
1993
%
MAY, 1993
%
MAY, 1993
%
MAY, 1992
%
Fit/Rack
1.24
3.06
2.72
1.61
2.40
Corporate
31.77
38.36
31.73
36.52
36.18
2.82
3.01
16.87
3.02
3.76
17.47
18.01
lIT/Package
21.48
4.60
16.64
GIT/Group
Airlines
3.38
7.67
5.72
4.58
19.58
19.18
13.93
20.51
19.55
Convention
3A2
2.55
9.85
2.35
1.99
Incentive
1.I 7
3.34
0.25
3.75
It.46
Compliment
Other
TOTAL
6.75
4.60
0.00
13.40
6.46
4.81
2.52
100.00
3.73
0.00
100.00
Gov't.lEmbassy
8.39
100.00
(J'igure.'t are bared on lolal occupied
100.00
room, 1101by lolal available
,.oorr~)
100.00
'
8.84
Exhibit 10
DUSIT T1IANI BANGKOK (A)
Room Revenue By Segment: 1Vray1993
(DtOOO)
56"
5~"
7"
51"
18~
SEGMENT
860
12,927
Corporate
..-....
.."....--.-..- ..-.-..--.-. '."-------.--....
932
(iov'L/Emhassy
------
Y -T-D
BUDGET
MAY,1993
MAY, 1993
Fit/Rack
2"
8%11%
1992
MAY,1992
760
1,433
1,079
--
..
5,404
11,576
15,314
,....----_.-'--_._----..-..--....--...-....--.--
.-
;
.
.----. 70,378
816
-
:
BUDGET'
1993
6,910
. 79,629
4,531
6,308
I1T/Package
r--
5,077
5,239
3,678
18,030
27,118
0 IT/Group
Airlines
1,100
2,232
1,169
5,786
12,288
2,749
2,864 .
673
2,126
15,008
3,402
13,952
3,638
.-
--
--
Convention
1,132
196
Incentive
---,
Compliment
Other
-_.
.
---
834
-..--
26,094
--
..
._- -
.JIJ
-'---
.-
2,249
59
-
443
1,191
0
350
2,342
29,184
23,899
129,710
155,707
--
--=-
--
.-
<,.,
.,.f'
"".
:1
,,~,'"
.' .
.t"
;
3,640
5,62
0
0
1,023
0
267
TOTAL
.- ..-.--.-. .....
._----_
. .
,
..
:I
:=
Exhibit 11"
Dusit Hotel Bangkok (A)
,-
L~~~I_Corporate Survey.
-
!
--
1991
1992
1.
MARUBENI
I
3,382
3,410
2.
F.E. ZUELLlG
980
1,209
3.
C.ITOH
I
I
1,106
1,093
4.
MITSUBISHI
I
872
1,017
5.
WORLD BANK
922
988
6.
DUPONT
724
921
7.
ESSO STANDARD
1,150
850
8.
BRITISH GAS
9.
CITIBAt\lK
I
I
I
I
350
743
300
656
316
582
I
10 .
B.P. PETROLEUM
11.
ALCATEL
500
509
FUJ ITSU
124
452
12 .
13 .
NISHO-IWAI
II
I
391
438
14 .
SHOGU RESTAURANT
II
446 .
406
15.
OKAYA & CO., LTD.
392
405
16.
IBM
210
358
17.
CHIA TAl
226
358
18 .
RIECKERMAN
326
346
19 .
MITSUI COMPANY
424
345
20.
LlNMARK INT'L (HK) LTD.
198
I
I
273
\a-
Exhibit 12
DU'SIT "THAN I BAN'GKOK'"(A)
,
-"
1992/93 PUBlrlSHED ROOM TARIFF AND CORPORATE RATES
,.
EFFECTIVE FROM OCTOBER 01, 1992 UNTIL FURTHER NOTICE
RACK RATES: (Commlslonable)
Superior
Deluxe
Landmark
Suite:
Business Suite
Thai H.~~~~~-~,--""~
SingleJDouble
Baht 4,800
aaht 5,200
Baht 6,100
i-Bedroom
aaht 10,000
Baht 15,000
..
'-'cC_O='~':72:BeClroorif~-"- .--..---
Princess Suite
Baht'19,000
-..
i-Bedroom
2-Bedroom
i-Bedroom
2-Bedroom
Executive Suite
Majesty Suite
Presidential Suite
, $ingleJDouble
SingleJDouble.
:
Baht .19,000
Baht 23,009
Baht 19,000
Baht 23,000
Baht 23,000
aaht 33,000
Baht 37,000
1-Bedrocm
i-Bedroom
2-aedroom
Baht
Extra Bed
900
.
GROUPIINCEITlVElCONVENTJONRATES (min. 15 pax)
SingleJDouble .
.
E.WING
LAI DMARK .
Baht 4,900
commissionabl,
.
Baht 3,700
r
CORPORATE RATES
. Corp-A .40% Discount
Superior
L{Sndmark
SingleJDouble
SinglelDouble
aaht 3,120++ <3,673net)
Baht 4,020++ (4,732 net)
Corp-B 35% Discount
Superior
Landmark
SinglelDouble
SinglelDouble
aah! 3,380++ <3,978net)
Baht 4,355++ (5,126 net)
Corp-C 30% Discount
Superior'
Landmark
SinglelDouble
SinglelDouble
Bah! 3,640++ (4,284 net)
Bsht 4,690++ (5,520 net)
.
New Corp Account 25% Discount
Superior
SinglelDouble
Landmark:
SingleJt>ouble
Baht 3,900++ (4,590 net)
aaht 5,025++ (5,914 net)
~i
~-
. ..E:I(~lblt_13
- - -
-
DUSIT THANI BANGKOK (A)
--
PROPOSED RATE STRUCTURE
om..--------
:.:-:.:.>:-:.:.:-:.:-:-»:
1. Single Rooms
Superior (A).
Superior (B)
Deluxe (Landmark)
2.815
3.500
4.500
I
2. Double Rooms
Superior (A)
Superior (B)
Deluxe (Landmark)
3. Suites
Thai Heritage (1 Bedroom) Thai Heritage (2 Bedroom)
3.375
4,125
-'--5,250
3.€OO
4.500
5.800
I
4.500
4,900
6.300
4,800
5.200
6.700
__I -
I
3,125
3.150
4.150
-I
8,000
7,000
-
11
3,750
4,375
5.750
10,000
13.000
I
4.000
4.900
6.300
4.500
4.900
_6.300
4.800
5.200
6.700
1
13,000
16.000
15.000
19.000
15.000
19,000
S3,3op1T3.500
S3.400fT3.600
S3.600fT'3.800
SfT 3.200
SfT 3,400
SIT 3.600
SfT 3,200
""""----
lillllllllli111r,.tlfl111111111Iil;~~111;1~1I1~!jljl~IIII~lljlj~I!!!!II~lllllllii~i~llil;11111111111;111111
r. Local
Category A
Category B
Category C
.
.--~~~III'~III
m"-""'---
I
2. Overseas
Category A Austrafia
Category B Incentive Consultant
Category C
UAPR
Category A
Category B
Category C
30
25
20
-MAYReduce
30
25
20
Baht 100 net
30
25
20
-
srr 3.300
SIT3,500
SIT3.500
SfT3.500
SIT3.500
IT
o
35
30
25
35
.
30
Exhibit 1'4
DUSIT.THANIBANGKO:K (A)
NUMBEROF EMPLOYEES.
,.
.
\.
1992
1991
1990
1989
1988
995
'1.010
'1;083
1.029
870
. ..
c
Exhibit 15
DUSIT THANI BANGKOK (A)
NUMBER OF EMPLOYEES BY DEPARTMENT
Rooms Division&Adm.
Food & Beverage
Laundry
Recreation
Accounting & Cashier
PersonnelfTraining
Marketing & Sales.
Security
Repairs & Maintenance
Housekeeping
108
560
7
110
552
9
59
13
24
22
"56
146
57
12
24
23
55'
168'
995
1,010
Exhibit 16
DUSIT THAN! BANGKOK
(A)
Organization Chart August 1. 1992
.CINDUL
MAN.l.CDI.
J\DIDI!IIT
IWIAOIDt
JtA.JA.!tOQW
,a.
tlUCYOR
O'I'DSOI'
1ft!L4
nAlm"o '
ROOM!
DlV.
""",,OIDl.
aJtIa:TOR
so C1AL
OOtECYOR
CHIll'
"
Wir
Dl!"rfln
IIUZT
P.ua:IJlO
Exhibit 17
DUSIT THANI BANGKOK (Al.
New Hotel Rooms in Bangkok
..
1992
1992~94
Imperial Queen"s Park
--' Twin Towers Travelodge
"'.-
.
AutthayaThan;
MonarchLee Gardens Hotel"
.'
.
1,400-
. .
Royal Garden Riveside Hotel
Hotel SunroUte
PavilionResort
ANAGrand Pacific Hotel
Siam City Hotel (expansion)
Emerald Hotel
Maruay Garden Hotel
HollywoodStreet
TridhosCityMarina
.
The BouleVard(expansion)
Airport Hotel (expansion)
"
"'700
"600
460
428
408
400
400
330
320
315
250
200
183
140
6,534
1993
China Princess
Windsor Hotel
Park View
Ambassador (expansion)
Novotel Hotel
Alexandra Hotel
Royal City
Royal City
Ramada Residence
Sofitel River Hotel
170
200
250
260
300
400
400
420
477
575
3,452
1994
400
429
475
1,080
Dusit Thani Group
Fortune Bluewave Hotel
Windsor Hotel'
Ambassador Hotel
2,384
TOTAL
===d~,3~C;
Source: Tourism Authority of Thailand
~-
----
..
Exhibit 19
DUSIT THANI BA'NGKOK (A)
COMPETITORS
1.
2.
3.
4.
5.
6.
7.
Oriental
Baht5,040++
Hilton
Ballt 3,430++
RoyalOrchidSheraton Baht 3,360++
Baht 3,750++
Regent
Baht 3,600++
Shangrl-La
GrandHyattErawan Ballt 2,500++
Sukhothal
Baht 2,300++
.~
Baht5,000n.
Baht3,600n.
Baht3,300n.
Baht3,375n.
Baht3,100n.+ ABF
n
n
Baht2,800n.
Baht3,000n.
393
343
773
400
871
400
222
5,181.35
3,241.16
2,619.08
3,638.77
3,204.01
3,373.61
2,739.17
70.29
70.70
65.18
62.04
51.04
45.63
35.78
204,651.72
220,022.50
176,447.55
205,046.09
174,090.19
153,820.26
65,854.43
350
400
500
400
800
400
300